Employment in Georgia is governed by the Labour Code of Georgia, an organic law substantially reformed in 2020. Payroll is comparatively simple: a flat 20% income tax and a funded pension scheme, with no general social security tax. Here is what employers need to know about leave, pay, tax and ending employment.
The Labour Code sets minimum leave, and an employment contract can improve on it but never reduce it. Paid maternity and parental leave is funded by the state budget rather than by the employer.
At least 24 working days a year, paid at average pay for the previous 3 months. Employees can request it after 11 months of work, or earlier by agreement.
At least 15 working days of unpaid leave a year, on top of paid leave.
143 calendar days for complications or twins. The mother decides how to split it before and after the birth.
Maternity leave plus the first 57 days of parental leave are paid by the state (200 days with complications or twins), at an amount set by government ordinance.
Parental leave totals 604 calendar days (587 after complications or twins), of which 57 days are paid, and it can be taken by the mother or the father, in whole or in parts, with 2 weeks’ notice. There is no separate statutory paternity leave, but the father can also use any maternity leave days the mother doesn’t take. Employers and employees can agree extra pay on top of the state allowance.
Unused paid leave can be carried over to the next year only with the employee’s consent, and not for 2 consecutive years. If the employer ends the contract, unused leave must be paid out pro rata.
Set up paid, unpaid and parental leave for Georgia in IceHrm, each with its own accrual, carry forward and approval rules. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Georgia has no meaningful general minimum wage for the private sector, so pay is set in the employment contract. The contract must state the salary and how it is paid.
Up to 48 hours a week in industries with specific operating conditions listed by the government. At least 12 hours of rest between shifts.
Overtime must be agreed and paid at an increased hourly rate set by the parties, or compensated with extra rest if agreed.
Pay must be made at least once a month. Late payment attracts a penalty of 0.07% of the overdue amount per day.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so the overtime rate you agreed with each employee is applied to what was actually worked. Time & attendance →
Georgia taxes personal income at a single flat rate. Employers withhold income tax from each salary payment and pay it to the Revenue Service. Resident individuals are not taxed on foreign-source income.
| Income | Rate |
|---|---|
| Employment income (withheld at source) | 20% |
Employees whose only income is salary taxed at source don’t file a return. Individuals with income not taxed at source must file by 1 April of the following year.
There are no social security contributions in Georgia. The main employer cost on top of salary is the mandatory funded pension scheme, which covers all employees except those who were already over the age threshold when the scheme started in 2019.
Of taxable salary, paid by the employer into the employee’s individual pension account.
Deducted from salary and paid by the employer on the employee’s behalf.
The state adds 2% on annual salary up to GEL 24,000 and 1% on salary from GEL 24,000 to GEL 60,000.
Build Georgian pay the way you already structure it, with your own salary components, deductions and formula columns, such as income tax and pension contribution columns. Want to know how well IceHrm handles payroll calculations for Georgia? Contact us or see Payroll →
An employer can only end an employment contract on one of the grounds listed in the Labour Code. An employee can ask for written reasons within 30 days of being notified, and the employer must provide them within 7 days; the employee can then challenge the dismissal in court.
For dismissal because of downsizing, a mismatch of qualifications, long-term incapacity and certain other grounds, the employer can choose between two options:
| Option | Written notice | Severance pay |
|---|---|---|
| Standard notice | 30 calendar days | 1 month’s pay |
| Short notice | 3 calendar days | 2 months’ pay |
| Resignation by the employee | 30 calendar days | Not applicable |
Contracts made for a trial period can be ended during the trial without these notice and severance rules. When the employer ends the contract, unused paid leave is paid out pro rata.
The Labour Code lists Georgia’s public holidays. Several follow the Orthodox calendar, so Easter usually falls later than in Western Europe. The government can declare additional days off.
Orthodox Easter covers 4 days: Good Friday, Holy Saturday, Easter Sunday and Easter Monday. Employees can agree other rest days in place of the statutory holidays in their employment contract.
Leave groups give each office its own holiday calendar, so your Tbilisi team gets the Orthodox holiday dates while offices in other countries keep their own. Holiday calendars →
An employment contract can be oral or written, but it must be in writing if the work lasts longer than 1 month. Before hiring, the employer must tell the candidate about the job, the form and duration of the contract, the working conditions and the pay.
Send written contracts for e-signing, store them on the employee’s record, and track onboarding and contract end dates with task lists so nothing is missed. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Georgia, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Georgia? Talk to us.
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